Investor Presentation • Nov 12, 2018
Investor Presentation
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November 2018
Business growth in the semiconductor market is driven by four key trends
The challenges of rising demand for energy and growing depletion of fossil resources call for smarter, more efficient ways of generating, transmitting and consuming energy. Semiconductors reduce the energy consumed by electronic devices, enabling systems that make the way we live and work greener. As the global leader in power semiconductors, Infineon's products and solutions allow energy to be generated more efficiently and from renewable sources.
Megatrends like demographic shifts, social change and urbanization are accentuating the need to manage rising public and private traffic volumes while mitigating the environmental and climate impact of this traffic. Sustainable, smart mobility solutions are essential given the growing scarcity of natural resources.
Through its semiconductors, Infineon is building more intelligence, responsiveness and autonomy into transport systems – enabling mobility solutions ranging from eBikes through hybrid and fully electric vehicles to underground and highspeed trains.
In an increasingly digital world with more and more connected devices, people want to interact and communicate in a secure way that protects their data against theft and misuse. Securing electronic devices and infrastructures is a number one priority. Addressing this need for security is one of Infineon's key competencies.
With more than 30 years of experience in the security market, Infineon offers tailored and ready-to-use security solutions serving a wide range of applications from smart cards, passports and cars to new and emerging use cases.
In today's digital world, more and more things are connected to the Internet. The volume of data generated, transferred and stored is rising day by day, so too is the need for high-speed and lowlatency communication.
With its sensors, controllers, power devices and authentication products, Infineon enables smart, secure and power-efficient IoT solutions for smart devices, homes, cities, factories and vehicles. It provides cutting-edge power solutions for data centers and servers as well as leading RF chipsets supporting mission-critical infrastructures like 5G.
| Focus | Technology leadership | System understanding | ||||
|---|---|---|---|---|---|---|
| › Focus on fastest growing segments of semi market › Tackle global megatrends |
› Leverage core compe tencies in different end markets to maximize ROI |
› Create value for customers through system understanding |
||||
| Auto | Power | RF and sensors | Security | |||
| System leader in automotive |
#1; system and technology leader |
Broad RF and sensor technology portfolio |
#1 in security solutions |
|||
| Average-cycle financial targets | ||||||
| ~9% p.a. Revenue growth |
~17%+ Segment Result margin |
~15% Investment-to-sales (thereof capex*: ~13%) |
||||
| * Infineon reports under IFRS |
Global Semiconductor Market
Market size in billion US-Dollar
Source: WSTS for historical data. Forecast: of WSTS, IHS Markit Technology Group, Gartner, IC Insights; last update November 2, 2018
Power Management & Multimarket
Industrial Power Control
* Other Operating Segments; Corporate & Eliminations
| Revenues | Net Income | [€ Million] |
2017 | 2018 |
|---|---|---|---|---|
| +8% | Revenues | 7,063 | 7,599 | |
| 7,599 7,063 |
Segment Result (SR) | 1,208 | 1,353 | |
| 1,075 790 |
SR Margin | 17.1% | 17.8% | |
| FY17 FY18 |
FY17 FY18 |
Net Income | 790 | 1,075 |
| Free Cash Flow | 594 | 618 | ||
| Investments | 1,022 | 1,254 | ||
| Net Cash | 618 | 1,011 | ||
| Market capitalization* | ~24,039 | ~22,134 |
*share price as of September 30th, 2017: 21.27 Euro; share price as of September 30th, 2018: 19.57 Euro
| Revenues | Net Income | [€ Million] |
Q3 18 | Q4 18 |
|---|---|---|---|---|
| +5% | Revenues | 1,941 | 2,047 | |
| 2,047 1,941 |
Segment Result (SR) | 356 | 400 | |
| 271 141 |
SR Margin | 18.3% | 19.5% | |
| Q3 FY18 Q4 FY18 |
Net Income | 271 | 141 | |
| Free Cash Flow | 192 | 227 | ||
| Gross Cash Position | 2,621 | 2,543 | ||
| Net Cash Position | 792 | 1,011 | ||
| Revenues | Net Income | [€ Million] |
Q4 17 | Q4 18 |
|---|---|---|---|---|
| +12% 2,047 |
Revenues | 1,820 | 2,047 | |
| 1,820 Q4 FY17 |
Segment Result (SR) | 328 | 400 | |
| 176 141 |
SR Margin | 18.0% | 19.5% | |
| Q4 FY18 | Net Income | 176 | 141 | |
| Free Cash Flow | 249 | 227 | ||
| Gross Cash Position | 2,452 | 2,543 | ||
| Net Cash Position | 618 | 1,011 |
Automotive: We shape the future of mobility with microelectronics enabling clean, safe, smart cars.
Power Management & Multimarket: We drive leading-edge power management, sensing and data transfer capabilities.
Smart Cards Embedded Security
› Transport ticketing
› Mobile device security and payment
› Transceivers (CAN, LIN, Ethernet, FlexRay™)
› Bare die business
Automotive Industrial Power Control Power Management &
*social engagement of companies.
Basis for the calculations are the square centimeters processed wafer area in the front-end production and consumptions according to WSC definition.
*ISO 27001/14001/OHSAS 18001 worldwide certification scheme; ** ISO 50001 certified at EU sites
www.twitter.com/infineon www.youtube.com/infineon
The IHS Markit reports, data and information referenced herein (the "IHS Markit Materials") are the copyrighted property of IHS Markit Ltd. and its subsidiaries ("IHS Markit") and represent data, research, opinions or viewpoints published by IHS Markit, and are not representations of fact. The IHS Markit Materials speak as of the original publication date thereof and not as of the date of this document. The information and opinions expressed in the IHS Markit Materials are subject to change without notice and neither IHS Markit nor, as a consequence, Infineon have any duty or responsibility to update the IHS Markit Materials or this publication. Moreover, while the IHS Markit Materials reproduced herein are from sources considered reliable, the accuracy and completeness thereof are not warranted, nor are the opinions and analyses which are based upon it. IHS Markit and the trademarks used in the data, if any, are trademarks of IHS Markit. Other trademarks appearing in the IHS Markit Materials are the property of IHS Markit or their respective owners.
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